HOA Insurance

Started by PattyanneZ • 10 replies • 406 views

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PattyanneZ (Montana)
Posts: 1

Posted:

Our HOA is looking for a better premium/coverage insurance policy. We have been with the same agency for 20 years but the premium jumps 10-15% every year. We need coverage for the exterior of our buildings and liability issues. What insurance companies are you using?

MichaelT21 (Arkansas)
Posts: 462

Posted:

Forum rules prohibit naming of companies.

KerryL1 (California)
Posts: 14,550

Posted:

Please read the posting rules.

MichaelS56 (Minnesota)
Posts: 859

Posted:

One of the options a Board has is to get more than one bid. A second option available is to raise the Association deductible from $10,000 to $20,000 or even higher.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Just call an independent insurance agent in your town. They'll hunt quotes from multiple companies. If you can supply them with a copy of your policy, they can ensure you get equal coverage.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By KellyM3 on 12/08/2022 12:16 PM
Just call an independent insurance agent in your town. They'll hunt quotes from multiple companies. If you can supply them with a copy of your policy, they can ensure you get equal coverage.

I agree.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

We changed the number of payments a year. That helped some. We paid 10 months a year. However, extending it to 12 made the payments lower. That is something to look into as an option.

Former HOA President

JohnK47 (Florida)
Posts: 1

Posted:

Our HOA’s budget is by calendar year (Jan - Dec), but our Insurance
is on Fiscal Year (Jun - May) and pay for 10 months, beginning June.
How should we budget for the next year, not knowing what the
Insurance would be?

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By JohnK47 on 12/13/2022 6:59 PM
Our HOA’s budget is by calendar year (Jan - Dec), but our Insurance
is on Fiscal Year (Jun - May) and pay for 10 months, beginning June.
How should we budget for the next year, not knowing what the
Insurance would be?

You just update the annual budget mid-year when the new premium comes in.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By MaxB4 on 12/13/2022 7:08 PM

You just update the annual budget mid-year when the new premium comes in.

I agree. A Budget is a best/educated guess. It is not cast in concrete. It can be changed during the year.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By JohnK47 on 12/13/2022 6:59 PM

How should we budget for the next year, not knowing what the
Insurance would be?

As others have said, a budget is not absolute. It's and educated guess.

One way to make an educated guess is to look at the past and see what the increases have been each year.
Then expect at least the same amount of an increase for next year.

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